(Yicai Global) June 1 -- China Petroleum Pipeline Engineering has penned an estimated USD31-million deal with the Sri Lankan government to build drainage tunnels in Colombo, capital of the island nation.

The firm penned a deal with the Ministry of Megapolis and Western Development on May 30 to build two tunnels in populated Colombo regions, state-owned Chinese news agency Xinhua reported. The project will be supported by loans from the World Bank, with construction beginning in July and lasting two years.

The existing tunnels were built over 150 years ago under British rule and their discharge capacity cannot keep up during the rainy season, the report cited Champika Ranawaka, minister of the MMWD, as saying.

"It is very important that these two underground tunnels are constructed as Colombo has been facing devastating floods in the recent years. The government has also launched a beautification program for Colombo city, and for that to succeed, constructing these tunnels will be of utmost importance," Ranawaka said.

The tunnels, to be built in New Muttuwal and Torrington, will be CPPE's first project in Sri Lanka as it looks to hop aboard China's vast Belt and Road Initiative. The strategy, devised by President Xi Jinping in 2013, is a 30- to 40-year plan for a vast trade and infrastructure network across Africa, Asia, Europe and South America.